United Electronics Company (eXtra) announces estimated financial results for the second quarter of 2013

07/07/2013

• Estimated second quarter 2013 net profit reaches SAR 53.3 million, up 10.12 per cent
• Estimated total sales increase by 33.7 per cent in second quarter of 2013 to reach SAR 971 million

Khobar, Saudi Arabia; July 7, 2013: United Electronics Company (eXtra), Saudi Arabia’s fastest-growing consumer electronics and home appliance retailer, today announced its estimated financial results for the three months ending June 30, 2013.

For the second quarter of 2013, eXtra reported an estimated net profit of SAR 53.3 million, compared to SAR 48.4 million for the same quarter in 2012, an increase of 10.12 per cent. Comparing the second quarter of 2013 with the previous quarter, eXtra reported an increase in estimated net profit of 103.44 percent, from 26.2 million to SAR 53.3 million. The increase was due to the seasonal effect and the 10th Year Anniversary event that took place during the second quarter of 2013.

Estimated net profit for the six months ending June 30, 2013, was SAR 79.5 million, compared to SAR 72.1 million for the same period of 2012, an increase of 10.26 per cent.

For the three months ending June 30, 2013, eXtra reported estimated total sales of SAR 971 million, compared to SAR 726 million for the same quarter of last year, an increase of 33.7 per cent. Estimated total sales for the six months ending June 30, 2013, were SAR 1,695 million, compared to SAR 1,352 million for the same period of 2012, an increase of 25.4 per cent.

The increase in estimated net profit and estimated total sales in the second quarter of 2013 compared to the same period of last year was due to the increase in all categories sales, the same stores positive growth, coupled with the increase in the number of the stores from 27 to 35.

Estimated Earnings Per Share during the six months ending June 30, 2013, were SAR 2.65, compared with SAR 2.4 for the same period of last year.

In April 2013, United Electronics Company shareholders voted to approve an increase in eXtra’s share capital from SAR 240 million to SAR 300 million in order to support the company’s future expansion plans.

Abdullah Abdulatif Al Fozan, Chairman, United Electronics Company (eXtra), said: “During an era of tremendous growth in the Saudi Arabian consumer electronics and home appliance market, eXtra has continued to be a standout performer. With the correct long-term funding base in place, we are now even better equipped to fulfill the undoubted potential of the eXtra business model. As our footprint and service offering continues to expand, eXtra can look forward with real confidence to the remainder of 2013.”

Karim Manssour-Dahbi, Chief Executive Officer, United Electronics Company (eXtra), said: “Our ongoing success is built on placing the customer at the centre of our business, and being able to consistently deliver on the eXtra promise to provide the widest range of products at the lowest prices and maximum convenience. The second quarter of 2013 witnessed a number of significant milestones, from store openings to new service offerings, which will ensure we continue to meet and exceed the expectations of our valued customers.”

eXtra opened new stores in the second quarter of 2013, located in Makkah, Riyadh and Bisha, bringing the retailer’s network to 35 stores.

eXtra was recently named as one of “The Top 200 Companies in the GCC” by Forbes Middle East, and also ranked as one of the Top 5 Services companies in the Kingdom of Saudi Arabia. In both 2010 and 2011, eXtra was cited by the Saudi Arabian General Investment Authority (SAGIA) as one of the Kingdom’s fastest-growing companies. In addition, eXtra was also recently named as one of the Arabia 500 top companies in recognition of its exceptional growth and sustained commercial success.